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A Power of Attorney (POA) is a legal document giving one person the authority to act on behalf of another in financial or legal matters.
In Depth
A Power of Attorney (POA) is a legal document that grants one person (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal) in financial, medical, or legal matters. This authority can be broad or specific, and it can take effect immediately or upon the occurrence of a specific event, like incapacitation. It's crucial for estate planning to ensure your wishes are carried out if you're unable to make decisions yourself.
Example
If you become too ill to manage your bills, a Power of Attorney would allow your appointed agent to pay them for you.